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What is a Stigmatized Property?

While location is often considered one of the most important factors in a home’s value, other considerations must be evaluated. What is a stigmatized property? It is typically associated with damage to a home’s reputation. Negative perceptions, whether valid or not, will impact the value of a home.

What is a Stigmatized Property

Real estate can be stigmatized for several different reasons:

Health Concerns: If you own a home in East Palestine, Ohio, it has dropped in value and will be difficult to sell.

Murder: Several years ago, I sold a San Fernando condominium where the owner shot himself in the living room. It was a probate sale, and the court-ordered appraiser refused to take into consideration the financial impact of the suicide when appraising the condominium. Murder or suicide has a definite impact on a home’s value. The more time that has passed, the less the stigma. On the other hand, deaths by natural causes do not have as much of an impact on value.

Conversely, a home with a pedigree, such as one built by a famous architect, will add value. Value is also added to homes once owned by a celebrity or with some other claim to fame, such as the Brady Bunch home. Calculating the loss or increase in value can be challenging. It requires a thorough understanding of our Los Angeles real estate market.

Would you buy a home if the previous owner was murdered? If so, how much of a discount would you expect?



One thought on “What is a Stigmatized Property?

  1. Steve says:

    Well I would certainly buy a home that was the site of a murder over one in East
    Palestine. It’s a state of mind issue versus a significant heath concern that would be hard to overlook. Especially if you are looking for a place to raise your family. I feel bad for those people. But both should be considered in an appraisal

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